Trump will cut pay raises for federal employees in 2018

The president told Congress on Thursday that he plans to slash federal workers’ pay raises to save money in 2018.

In a letter to House Speaker Paul Ryan and Vice President Mike Pence – who serves as president of the Senate – Donald Trump complained that the scheduled hikes are ‘inappropriate.’

Trump’s decision won’t affect military personnel.

President Donald Trump is reducing the pay raises federal employees will receive in January 2018, cutting base salary increases from 1.9 per cent to 1.4 per cent

Base salary increases for most civilian federal employees are on autopilot, and would have ticked up by 1.9 per cent at the end of the year if Trump hadn’t intervened.

Instead, that number will be just 1.4 per cent – far less than the 2.1 per cent increase workers got in January 2017.

But former President Barack Obama gave them just 1.3 per cent extra in 2016.

In addition, Trump said, ‘locality pay increases averaging 26.16 percent and costing $26 billion would go into effect in January 2018.’

Trump is adjusting that to an average increase of just 0.5 per cent.

‘Locality’ bonuses are supplements to base government workers’ salaries based on where they live, accounting for differences in the cost of living in various parts of the country.

The lowest amount, paid to employees in rural areas and smallish cities, is just over 15 per cent. The highest, in the San Francisco bay area, is more than 38 per cent.

Also on the chopping block are hikes in 'locality' payments that employees receive on top of their base salaries in varying amounts according to the cost of living. The highest payments are for people who work in the bright green areas above

Also on the chopping block are hikes in ‘locality’ payments that employees receive on top of their base salaries in varying amounts according to the cost of living. The highest payments are for people who work in the bright green areas above

In his letter to Ryan and Pence, Trump cited his authority to change federal salaries in times of ‘national emergency or serious economic conditions affecting the general welfare.’

He didn’t name a specific emergency or economic crisis.

But he insisted that the automatic raises would not leave enough money in the federal budget to maintain ‘support for key Federal priorities such as those that advance the safety and security of the American people.’

Under Trump’s budget proposal, released in May, military servicemen and women will see their pay increase by 2.1 per cent.

‘I strongly support our men and women in uniform, who are the greatest fighting force in the world and the guardians of American freedom,’ Trump wrote. 

‘As our country continues to recover from serious economic conditions affecting the general welfare, we must work to rebuild our military’s readiness and capabilities.’

The National Treasury Employees Union, which represents 150,000 federal employees, carped in a statement that Trump’s number for civilians is ‘too low especially in light of the fact that federal law calls for a 1.9 percent across-the-board raise and private sector wages are growing at an even faster rate.’

‘Add to that, current proposals attacking the federal retirement system would result in a pay cut for federal workers.’

 

Read more at DailyMail.co.uk